All-Ordinaries Stock Index
What Does All-Ordinaries Stock Index Mean?
A stock index comprised of common shares from the Australian Stock Exchange. The All-Ordinaries Index is the most quoted benchmark for Australian equities. The ASX is responsible for calculating and distributing the index and its returns.
Investopedia explains All-Ordinaries Stock Index
The All-Ordinaries Index is market weighted and includes over 300 companies. For a company to be included in the index, they must meet the requirements established by the ASX. For example, a stock must have a market value of over 0.2% of all equities listed on the exchange. Furthermore, the stock must be liquid, with a monthly turnover of 0.5% of its total outstanding shares. The ASX rebalances the index each month, ensuring companies still meet these requirements.
Related Links
- The ABCs Of Stock Indexes - Indexes can track market trends, but they're not always reliable. Can you trust them?
- Index Investing - Get to know the most important market indices and the pros and cons of investing in them.
- Market Strength Tutorial - Here you can learn about some of the indicators that traders and brokers use to determine the direction and strength of the market's present trend.
